Self Managed Super Funds (SMSF)

Is it right for me?

• Generally, a minimum investment amount of $200,000 is required as there will be some upfront and ongoing costs involved in establishing and running your fund.
• Ideal if you like flexibility and control over your investments. There are strict rules around how a SMSF can invest, so it’s recommended you seek professional advice if you are not comfortable doing this yourself  
• You need to invest sufficient time in managing your own fund. Each trustee is responsible for the decisions and operation of the fund, including compliance and setting the fund’s investment strategy
• Annual audits are required and they need to be conducted by an approved auditor.

Setting up your Self Managed Super Fund

Establishing your fund correctly from the start is vital to ensure that it runs smoothly. With the right advice and expert guidance, usually from an accountant, you can be confident that your fund will be set up correctly and all legal requirements taken care of. Establishing your SMSF includes:

• Establishing the Trust Deed
• Appointing the trustees and agreeing how the assets of the Fund will be held and managed
• Registering your fund with the ATO, establishing a Tax File Number (TFN) for the fund as well as an Australian Business Number (ABN) if it is a Corporate Trust
• Establishing a cash hub account, such as the St.George Investment Cash Account, in the name of your Self-Managed Super Fund to accept your super contributions and to pay the running expenses of your fund
• Rollover your existing Super that may be with your Industry fund or Corporate Super fund to your newly established SMSF. Organise to have the money transferred to the bank account in your SMSF’s name and then you can start investing the funds as you like.
  
• Invest your Super - once you have rolled over your Super, you can begin investing it.

St.George has a range of products to help you manage your Self-Managed Super Fund.

1. Start with your Cash Hub Account

Self Managed Super Funds typically have a working account at the centre of all their investments. The St.George Investment Cash Account offers flexible and convenient options to do your fund’s banking, ranging from Internet and phone banking to branch and cheque book access.

You can use this account to:

• Earn competitive interest while you ‘park’ your funds when you’re between investments,
• Pay your super fund’s expenses,
• Accept your regular superannuation contributions,
• Accept your dividends from your shares, rent from your property, interest from your Term Deposits and distributions from your managed funds.

2. At-Call High Interest Investments

At-call Savings and Investment accounts allow you to grow your savings with the knowledge that your money is secure. You also can access you funds instantly to take advantage of investment opportunities as they arise. St.George offers a competitive range of savings and investment products including:

• DIY Super Saver, a high interest online investment account accessed online; with no minimum deposit no minimum balance required and no monthly account service fees.

3. Fixed Term Deposits

These cash investments provide you with peace of mind to ensure you are comfortable now, and in retirement. You can select a term from 1 month to 5 years and earn a guaranteed rate.

4. Buying shares for your Self Managed Super Fund

If you’re interested in buying shares, instalment warrants and managed funds, St.George directshares Online Broking is a convenient, low cost way to manage your investments, where and how you want. With our extensive range of investment tools and research, you will have what you need to help you unlock investment opportunities:

• Independent Buy, Sell and Hold recommendations and ratings for over 300 stocks
• Free, easy to use, annual tax summary
• In-depth company profiles including key financial ratios and dividend performance
• Australian and overseas market news, real-time company announcements and commentary from industry experts

When buying managed funds in Super with directshares Online Broking, you can also:

• Gain access to more than 500 managed funds
• Access free research from Morningstar to help you review the performance and investment objectives of a fund
• Invest online with no need for paperwork, and view your shares and managed funds in one place
• Benefit from no entry and exit fees

5. Buying property for your Self-Managed Super Fund

Using your SMSF to borrow and invest in residential property will help you accelerate wealth accumulation and diversify your investment portfolio. With a St.George Super Fund Home Loan you can:

• Borrow funds to invest in real estate for investment purposes
• You may be entitled to receive income tax and negative gearing benefits.¹
• Accumulate and access additional funds while helping you save interest on your loan using our 100% interest offset facility.²
• Rest assured knowing that other SMSF assets are safe from recourse as the ability to recover the home loan debt is limited to the property itself, so other assets of your super fund are not put at risk.

When you borrow funds through your SMSF to purchase an investment property all other assets owned by your fund are protected in case the loan cannot be repaid.

Make more informed decision with St.George Financial Planning

While there are benefits in establishing a SMSF, running your own fund is complex and there are many things you have to consider. A St.George Financial Planner can help you make more informed decisions about your SMSF options and investment strategies by understanding your financial situation and helping you to develop a financial plan to meet your short-term and long-term goals. The right planner has the potential to provide value for money and create a tailored plan to grow and protect your financial future.

Some services provided by our financial planners include:

• Establishing your SMSF
• Making the most of your superannuation
• Maximising your income in retirement
• Discussing strategies to help reduce tax
• Learning how to accumulate wealth through margin lending and investment gearing strategies
• Providing expert advice on redundancy or early retirement

If you are looking to establish a SMSF or for financial insight and guidance, a St.George Financial Planner can make a difference. They will be able to offer sensible, achievable solutions and help you avoid costly mistakes or missed opportunities that could side track your future plans.